Hike in night shift pay of BPO workers threatens PH competitiveness

Increasing the night differential pay of business process outsourcing (BPO) workers may have an impact on other workers rendering night work in other fields, and may lessen the competitiveness of the Philippines in the BPO industry.

These were among the concerns raised during the hearing of the House labor and employment committee on various bills seeking to protect the welfare of BPO workers, specifically House Bill No. 2225.

Maguindanao 2nd District Rep. Zajid Mangudadatu filed this bill which seeks to increase the night shift pay in BPO firms from the current 10 percent to 25 percent.

The existing provision in the Labor Code mandates an additional 10 percent pay for work done between 10:00 p.m. to 6:00 a.m.

Nicki Agcaoili, Information Technology and Business Process Association of the Philippines (IBPAP) executive director, said the IBPAP welcomes this bill but has warned lawmakers of its possible effects to the competitiveness of the Philippines, especially with rival countries like China and India.

“We have to factor in ‘yung ating ka-competition in India and China. Sa kasalukuyan po, Pilipinas lang ang nago-offer ng night differential. India does not offer,” he said.

“While we’re not saying that it’s not good, we’d like to deliberate sa magiging impact nito on our country’s competitiveness, pangalawa po is impact on business sector po,” he added.

National Wages and Productivity Commission (NWPC) Deputy Executive Director Patricia Hornilla also said this may trigger concerns from other night shift workers in other industries, as well as from employers.

“We support the legislative intent taking into consideration the hazards, risks, and stress associated with the night work. However, we also appreciate the presence of the industry players, we’d like to hear the perspective of those who will pay the additional night differential,” she said.

“What we are concerned about is the impact of additional night shift pay on other workers rendering night work in other industries which can be equally, if not more hazardous, stressful and risky,” the official added.

Agcaoili said the BPO industry employs around 1.2 million Filipinos (directly employed), while another 3.2 million are indirectly hired.

He added that 65 to 70 percent of these workers are working during the graveyard shift because the majority of their clients are from North America, Europe, and the Middle East.

The BPO industry is second to overseas Filipino workers (OFWs) when it comes to contribution to the country’s income, Agcaoili added.

Other issues

At the hearing, Dr. Valeriano Timbang from the Department of Health said night shift workers have high risks of developing cardiovascular diseases. He also said the nature of their work “could be very stressful and can lead to mental health issues.”

Atty. Mylene Cabalona from the BPO Industry Network said they have been conducting surveys which bared that 53 percent of BPO workers are women and they are mostly rendering night shift work.

Cabalona also said their survey showed that there is discrimination in the BPO industry. She cited as examples some respondents were not regularized because they got pregnant, or being terminated when they got pregnant. She also cited the “depressing wages” being offered by some BPO companies in Metro Manila which could go as low as P12,500.  /muf